South African authorities have arrested a man suspected of using bitcoin to finance terrorist activities

A South African law enforcement agency recently arrested a 35-year-old man on suspicion of using cryptocurrencies to finance terrorist activities. The investigation was launched in May 2018, when the Financial Intelligence Centre (FIC) and the Detection Unit received information about suspicious transactions suspected of being linked to terrorist financing. It is alleged that on November 30, 2017, the suspect purchased $614 worth of bitcoins through virtual asset service provider Luno and transferred the funds from the suspect's bank account to Luno's escrow account. Subsequently, the bitcoins were transferred to another wallet associated with an unnamed "independent" organization. South African law enforcement said a preliminary investigation revealed that the funds were diverted to provide weapons, financial assistance and other items to "participants" in another country. After identifying the purpose of the funds, South African law enforcement raided the suspect's residence with a warrant on October 24 and seized multiple items, including firearms that were not locked in a safe place as required by law. The man is expected to appear in the Lichtenburg Magistrates' Court on January 6.